Denmark: Consumer confidence increases in January
January 23, 2020
The consumer confidence index released by Statistics Denmark increased to 4.5 in January from 2.5 in December. Therefore, the index remained above the zero-threshold that separates optimism from pessimism among consumers.
The uptick in January was primarily driven by consumers’ more positive views towards their financial situation over the last 12 months and for the year ahead. Moreover, households were more positive about national economic conditions over the past 12 months and were less pessimistic about making major purchases now rather than in the future in January.
Consumer sentiment was volatile in 2019, as external headwinds such as Brexit uncertainty and an economic slowdown in the euro area were partially offset by strong household savings and disposable income. Looking ahead, healthy labor dynamics and strong growth in house prices will likely support consumer confidence, while uncertainty over external risks should be receding due to less unknowns around Brexit and the U.S.-China “phase one” deal. That being said, an uncertain global growth outlook will likely continue to drag on consumer optimism.
Author: Steven Burke, Economist